Why Life Insurers Need More Than Technology to Transform

For large life insurers that manage both general account assets and third-party institutional capital, the pressure to modernize investment operations is mounting. The dual mandate-supporting insurance-driven asset management while competing in the institutional space-requires not just investment performance, but also robust infrastructure, scalable processes and accurate, timely reporting.

Many insurers are caught between two realities:

• Some still rely on legacy platforms built primarily for statutory accounting, with limited flexibility for today's asset classes, client demands or regulatory complexity.
• Some have migrated to cloud-based platforms, only to find the experience falling short of expectations. Manual work persists, support has degraded and internal oversight has increased rather than decreased.

Either way, the outcome is the same: inefficiency, frustration and unrealized value.

Cloud Isn't the Finish Line-It's the Starting Line

For those that have moved to the cloud, the benefits promised-automation, flexibility, scalability-are too often offset by service issues and operational gaps.

Common challenges include:

• Degradation in service from providers who lack deep insurance accounting expertise
• Manual workarounds for complex or private assets, often requiring Excel templates and additional internal resources
• Insufficient internal controls, such as missing or weak SOC 1 and SOC 2 reports, triggering more internal oversight
• Ongoing data integrity and integration issues that erode trust in reporting and insights

In short, insurers upgraded the tech stack, but not the experience.

For Legacy Holdouts, Risk Is Growing

Meanwhile, life insurers still relying on legacy systems face rising costs, growing regulatory complexity and increasingly strained internal teams. These platforms were never built to handle today's portfolio complexity, and they limit the insurer's ability to scale or serve third-party clients effectively.

Sticking with what's familiar may feel "safe," but it carries hidden costs like operational inefficiencies, regulatory risk and the inability to respond to shifting business demands.

The Real Barrier: Fear of a Painful Implementation

Whether transitioning away from legacy systems or replacing underperforming cloud platforms, many insurers hesitate to move forward. Past implementations may have run over budget, taken longer than expected or delivered disappointing results. Internal resources are already stretched thin, and there's often a sense that "we can't take on one more thing."

But successful transformation doesn't hinge on the insurer alone; it depends on choosing the right partner.

What the Right Partner Brings to the Table

When modernization projects fail, it's usually not the technology to blame; it's the lack of implementation discipline, insurance expertise and service quality. The right technology and services partner should offer:

• Deep insurance-specific expertise, especially in statutory accounting and regulatory reporting
• Proven, structured implementation methodology, with clear timelines, governance and accountability
• Automation that actually works for complex and private asset classes-eliminating spreadsheets, not multiplying them
• Strong internal controls (SOC 1 and SOC 2) to reduce internal oversight burdens
• Flexible architecture that supports both general account and third-party AUM without duplicating processes

When these elements are in place, the risk drops, and the value emerges quickly.

The Takeaway: You Don't Have to Settle

Whether your investment platform is aging or underperforming, you don't have to settle for workarounds, manual effort or poor service. Modernization doesn't have to be a painful, drawn-out process. With the right partner-one who understands large, complex insurers and has the track record to prove it-transformation can be on time, on budget and deliver real results.

The key is recognizing that technology alone isn't enough. Success comes from pairing modern systems with the right expertise, methodology and support.

For life insurers managing billions across general accounts and institutional mandates, it's not just about keeping up. It's about building a platform that moves the business forward.

Contact us to learn how SS&C can help.